Crypto exchange and debit card provider Crypto.com has completed the acquisition of an Australian financial services company to secure the Australian Financial Services License, or ASFL.
The acquired company, called The Card Group Pty Ltd, is described as specializing in “prepaid, mobile and wearable card solutions” to increase cardholder engagement. Most importantly, the company has been approved by the Australian Foreign Investment Review Board, paving the way for ASFL Crypto.com.
With ASFL under its auspices, Crypto.com will have the license to legally issue its holdings in Australia and to build direct relationships with domestic consumers along with actors in Australia’s broader financial services system.
Crypto.com – which operates DeFi apps, exchanges and wallets, as well as Visa cards – has made some of the first steps to building an Australian user base; it recently allowed the transfer of Australian dollars in and out of its platform via NPP (PayID) or BPAY from the user’s bank account.
All blockchain businesses whose activities include certain financial services are required to secure the ASFL to operate in Australia, which means they are required to comply with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.
As outlined by the analysis section Cointelegraph recently, Australia was seen by crypto business operators as a “relatively permissive jurisdiction” from a regulatory perspective. The measures the country has introduced so far draw on the long-term awareness of the nascent sector, dating back to early 2014 – well before the asset class hype and bull run of 2017. However, from the perspective of blockchain technology more broadly, the national blockchain roadmap the country has drawn some criticism for its seemingly narrow vision.